Kenya Improved market access for smallholder farmers through a digital distribution network

In much of rural Kenya, the agricultural value chain is largely based on informal networks. The consequent frictions in the supply chain lead to considerable losses – both in the production and marketing of agricultural products. Smallholders often lack access to suitable and affordable farm inputs such as drought-resistant seeds, pesticides, or irrigation systems and rarely receive information or training on modern and sustainable farming methods. Local agro-dealers also have to deal with structural problems, namely limited access to reliable supply chains, as well as a lack of business skills and digital tools for business management. This makes it difficult for them to provide professional customer service and inhibits their growth potential. The consequences are low agricultural productivity, low income, food insecurity, and families caught in the poverty trap.

Advancing climate change amplifies the challenges with an increase in extreme weather events, higher risks, and declining yields threatening the livelihoods of millions. The demand for modern, climate-resilient solutions in agriculture is growing, but affordable options remain scarce. In a country with approximately 8.5 million smallholder farmers – around 70 per cent of them women and young people – this is a major obstacle to development.  Kenya’s tremendous potential for productivity and sustainability in the agriculture sector therefore remains largely untapped.

Shamba Pride meets these structural challenges by adopting a digital and scalable approach that involves a platform specifically designed to connect smallholder farmers with certified local agro-dealers. The platform helps create a strong network of dealers who have access to digital management tools, regular training sessions and a transparent supply network in so-called DigiShops. This allows them to professionalise their business, reduce logistics costs and expand their services.

Smallholder farmers also benefit from this innovation, as the DigiShop network offers them reliable access to high-quality inputs, agricultural advisory and extension services and training sessions, at fair prices and within easy reach. This not only enhances their productivity but also strengthens trust between traders and smallholder farmers – essential for building lasting business relationships.

The DigiShop model ensures accuracy in data collection and impact measurement. Within the framework of the project, the digital infrastructure of the shops was developed specifically to simplify accounting procedures, increase supply chain efficiency, and support data-based decision-making.

Thanks to co-financing totaling EUR 300,000 from DEG Impulse under the develoPPP Ventures programme, the DigiShop network was expanded from 40 to 85 locations. This resulted in the following outcomes, among others:

• Better access to inputs and advisory services: 30,086 smallholder farmers, including 13,352 women, benefit directly from improved access to high-quality farm inputs and to agricultural extension and training.
• Increased productivity and income: The agricultural productivity of participating farms increased by an average of over 200 per cent. This in turn led to significantly higher income levels, which directly impacted the families in terms of the quality of life and the investment capacity of their farms.
• Job creation: 95 formerly informal dealers were accepted into the DigiShop network. They professionalised their business models, and created 190 new jobs in the process.